Upon graduation from high school, William Nitter accepted a job as a plumber's assistant for a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Upon graduation from high school, William Nitter accepted a job as a plumber's assistant for a large local plumbing company. After three years of hard work, William received a plumbing licence and decided to start his own business. He had saved $31,000, which he Invested in the business. His lawyer had advised him to start as a corporation. First, he transferred the $31,000 from his savings account to a business bank account for William's Plumbing Services Inc. and was issued shares. He then purchased a used panel truck for $21,500 cash and second-hand tools for $3,700, rented space in a small building, inserted an advertisement in the local paper, and opened his business on July 1 of the current year. Immediately. William was very busy, after one month, he employed an assistant Although William knew practically nothing about the financial side of the business, he realized that a number of reports were required and that expenses and collections from clients had to be controlled carefully. At December 31 of the current year, prompted in part by concern about his income tax situation, William recognized the need for financial statements. His wife Jennifer developed some financial statements for the business. On December 31, with the help of a friend, she gathered the following data for the six months just ended. Bank account deposits of collections for plumbing services totalled $71,000. The following cheques had been written: plumber's assistant, $17.700, payroll taxes, $820; oil, gas, and maintenance for the truck, $2.750; rent, $2,850; supplies purchased and used on jobs, $17,800; utilities and telephone. $2,200; insurance, $840 for the past six months; and miscellaneous expenses (including advertising), $1,180. Also, uncollected invoices to customers for plumbing services amounted to $6,700. The $570 rent for December had not been paid. William estimated the cost of using the truck and tools (depreciation) during the six months to be $3,100. The average income tax rate for income from his business is 30 percent. Required: 1. Prepare a statement of earnings for William's Plumbing Services Inc. for the six months of July through December of the current year. Use the following main captions: Revenue from services, Expenses. Earnings before income taxes, and Net earnings. WILLIAM'S PLUMBING SERVICES INC Statement of Earnings For the Six Months Ended December 31, Current Year Expenses Next Upon graduation from high school, William Nitter accepted a job as a plumber's assistant for a large local plumbing company. After three years of hard work, William received a plumbing licence and decided to start his own business. He had saved $31,000, which he Invested in the business. His lawyer had advised him to start as a corporation. First, he transferred the $31,000 from his savings account to a business bank account for William's Plumbing Services Inc. and was issued shares. He then purchased a used panel truck for $21,500 cash and second-hand tools for $3,700, rented space in a small building, inserted an advertisement in the local paper, and opened his business on July 1 of the current year. Immediately. William was very busy, after one month, he employed an assistant Although William knew practically nothing about the financial side of the business, he realized that a number of reports were required and that expenses and collections from clients had to be controlled carefully. At December 31 of the current year, prompted in part by concern about his income tax situation, William recognized the need for financial statements. His wife Jennifer developed some financial statements for the business. On December 31, with the help of a friend, she gathered the following data for the six months just ended. Bank account deposits of collections for plumbing services totalled $71,000. The following cheques had been written: plumber's assistant, $17.700, payroll taxes, $820; oil, gas, and maintenance for the truck, $2.750; rent, $2,850; supplies purchased and used on jobs, $17,800; utilities and telephone. $2,200; insurance, $840 for the past six months; and miscellaneous expenses (including advertising), $1,180. Also, uncollected invoices to customers for plumbing services amounted to $6,700. The $570 rent for December had not been paid. William estimated the cost of using the truck and tools (depreciation) during the six months to be $3,100. The average income tax rate for income from his business is 30 percent. Required: 1. Prepare a statement of earnings for William's Plumbing Services Inc. for the six months of July through December of the current year. Use the following main captions: Revenue from services, Expenses. Earnings before income taxes, and Net earnings. WILLIAM'S PLUMBING SERVICES INC Statement of Earnings For the Six Months Ended December 31, Current Year Expenses Next
Expert Answer:
Answer rating: 100% (QA)
lets break down the information provided and calculate the amounts needed for the statement of earnings for Williams Plumbing Services Inc for the six ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259105692
6th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel G Short, George Kanaan, Maureen Sterling
Posted Date:
Students also viewed these accounting questions
-
Upon graduation from high school, William Nitter accepted a job as a plumbers assistant for a large local plumbing company. After three years of hard work, William received a plumbing licence and...
-
At Blossom Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciation for 2018 was found to be understated by $148000. (2) A strike by...
-
First make a substitution and then use integration by parts to evaluate the integral. a. « cos x dx c. « x ln (1 + x) dx VT/2
-
Problem 10: A 2.2-cm-tall object is placed 4.9 cm in front of a convex mirror with radius of curvature 21 cm. Part (a) What is the image distance, in centimeters? Include its sign. Problem 11: A...
-
In the third system of pulleys, 4 pulleys are arranged. Find the effort required to lift a load of 1 kN if the efficiency of the pulley system is 80%.
-
In 2008 the Better Business Bureau settled 75% of complaints they received (USA Today, March 2, 2009). Suppose you have been hired by the Better Business Bureau to investigate the complaints they...
-
Blossom Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $450,000, has an expected useful life of 11 years, a salvage value of zero, and is...
-
Rita and her mother Rosa own and operate Freeze Hub, LLC, a company specializing in freeze-drying flowers from clients memorable events, such as proms and weddings. The company not only freezes the...
-
1. a small droplet of oil with a mass of 3.50 x10^-15 kg is given a small excess charge, which allows it to be held suspended in a region of uniform electric fields which is directed downward with a...
-
A mini cooper with a mass of 1310 kg, is driving in circles in a parking lot. The force of friction between the asphalt and the tires is 655N. if the radius of the circle is 20.0 m, what is the...
-
A curling stone thrown by the skip takes 4.8 s to travel 60 m. The stone collides with another stone. The collision is a glancing one. If the second stone is deflected 25 and travels 1.5 m/s,...
-
Background information: The supply chain profession entered the year leading the digitalization of ecosystems, delivering the customer experience, managing trade uncertainty, and applying circular...
-
Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $132,900 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes...
-
Given this network plan, complete the following activities: Complete the network diagram by conducting a forward and backward pass through the network. Compute the early/late start time, early/late...
-
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job C? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job C D E...
-
A food processor claims that at most \(10 \%\) of her jars of instant coffee contain less coffee than claimed on the label. To test this claim, 16 jars of her instant coffee are randomly selected and...
-
Refer to Exercise 4.2. (a) Determine the cumulative probability distribution \(F(x)\). (b) Graph the probability distribution of \(f(x)\) as a bar chart and below it graph \(F(x)\). Data From...
-
Four emergency radios are available for rescue workers but one does not work properly. Two randomly selected radios are taken on a rescue mission. Let \(X\) be the number that work properly between...
Study smarter with the SolutionInn App